KATHMANDU: A positive circuit breaker has been imposed in Nepal Stock Exchange (NEPSE) index today (Sunday).
NEPSE informed that trading was closed for 20 minutes as the NEPSE index increased by four percent in one minute and 31 seconds after the start of today’s trading.
The positive effect of the monetary policy of the current fiscal year 2081/82 has been seen in the capital market.
During this pause, the total turnover amounted to Rs 52.49 crore.
Trading resumed at 12:02 PM with the index showing a gain of 129.07 points.
Earlier today, the market encountered another brief halt when the benchmark index rose by 4 percent shortly after opening.
Trading recommenced at 11:21 AM following this short break.
NEPSE employs Index-based Circuit Breakers to address extreme market fluctuations.
The thresholds for these breaks are set at 4 percent, 5 percent, and 6 percent in either direction to manage market volatility effectively.
For a 5 percent movement, NEPSE implements a 40-minute trading halt if it occurs before 1:00 PM.
If the movement happens after 1:00 PM, trading continues without interruption.
A 6 percent movement, however, leads to a complete trading halt for the remainder of the day, providing a robust response to exceptional market changes.